China may make sense on a case by case basis. As infrastructure in these markets is mainly greenfields, any investment will be a higher risk, growth investment relative to existing core, established infrastructure assets. While the opportunity appears strong, the infrastructure theme is also captured in other investments, including some global equity portfolios. Property investing is a localised and competitive market, and we believe there are greater structural and investment risks compared to infrastructure. While select attractive opportunities to invest in Chinese or Indian property may arise from time to time that overcome some of the inherent risks, the returns for such an investment need to be commensurately high, and this is a significant hurdle for investors. Given the significant risks involved for unlisted property, this may be better achieved via a REITs allocation.
04/09/2009
emerging, economy, crisis, unlisted, investing, risks, attractive, india, infrastructure, relative, portfolios, exposure
Alternatives
The chief investment officer of the $150 billion industry super fund says that Hostplus’ portfolio will weather the ongoing downturn in software companies and that moves by a number of large private credit managers to gate their funds are a result of the asset class being offered to retail investors who should not have assumed the funds would be liquid enough to get money out when everybody else is trying to do the same.
Leave a Comment
You must be logged in to post a comment.